Government of pakistan securities and exchange commission of pakistan notification

  
13. 
Contents of the Rating Agreement. - (1) A credit rating company shall not accept 
any rating assignment except through a rating agreement in writing and the rating agreement must 
contain all the necessary provisions including but not limited to the following:
(a) 
requiring the customer to provide the credit rating company true, accurate, 
complete, and updated information to enable it to arrive at and maintain a fair and 
true rating of the customer and/or the instrument, as the case may be;
(b) 
empowering the credit rating company to call and obtain, any time during the 
validity period of the agreement or during the tenure of the instrument, all such 
information as deemed necessary by it for conducting effective and timely review 
of the rating assigned;
(c) 
A clause stipulating rating withdrawal, or cancellation of agreement or any other 
measures to be taken by a credit rating company in case of non-provision of 
information by the client; 
(d) 
consent of the customer authorizing the credit rating company to conduct review of 
the rating any time during the validity period of the agreement or during the tenure 
of the instrument;
(e) 
a clause requiring the customer to [comply with sub-regulation (8) of regulation 10 
of these Regulations;]
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Substituted for the text “A clause requiring the customer to obtain NOC from its existing credit rating company in case of 
termination of rating agreement prior to its expiry or ensures in writing that it shall continue credit rating with its existing credit 
rating company for at least one year 
Provided that this clause shall not be applicable in case of a credit rating assignment obtained through open bidding under the 
Public Procurement Rules 2004 or any other applicable law relating to procurement of services” vide S.R.O. 1755(I)/2022 dated 
September 19, 2022. 

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[(ei) a clause stipulating that, in case of dual private rating, authorizing the existing credit 
rating company to make public the private rating assigned by it, in case its client 
approaches another credit rating company, during the life of the contract with the 
existing credit rating company, to make public the private rating assigned by such 
other credit rating company.]
(f) 
a clause clearly stipulating the beginning date and expiry date of the rating 
agreement;
(g) 
a clause stipulating the fee to be charged by the rating company including the initial 
fee and surveillance fee if any, along with their payment schedule.
(h) 
rights and obligations of each party to the agreement;
(i) 
nature of the rating i.e. entity rating, instrument rating or both; and
(j) 
tenure of the rating.